Foxconn considering rotating CEO system in management reshuffle

In a major overhaul of its management structure designed to nurture future talent, Apple supplier Foxconn is considering introducing a rotating chief executive system. The plan is supposedly a response to repeated calls by investors to boost corporate governance by separating the role of chief executive from the chairperson. Young Liu has held both the roles since 2019 in the 50-year-old Taiwanese company.

Foxconn is the world's largest contract electronics manufacturer and a major iPhone assembler.

The rotating chief executive structure can promote teamwork and prevent leadership from becoming entrenched, while also developing a next generation of talent. Senior Foxconn managers have discussed the rotating CEO plan for several months.

Two of the three sources also said that one option being considered is to have four CEOs on a rotating basis of six months at a time. They said details had not been finalised and were subject to change.

All the sources said no final decision had been taken as the Foxconn management was deliberating on how the proposed system would work, possible candidates for rotating CEO roles, their responsibilities and how they would work with Liu.

The rotating CEOs, according to the sources, would be expected to oversee Foxconn's six core businesses, which include smartphones, personal computers and televisions but exclude the operations of major listed subsidiaries such as Foxconn Interconnect Technology, FIH Mobile and Foxconn Industrial Internet.